FAST-FOOD giant Jollibee Foods Corp. (JFC) is set to acquire full ownership and control of Tim Ho Wan, a Hong Kong dim sum restaurant, for S$20.2 million (P892.29 million).
The ownership and management of Tim Ho Wan will be transferred to JFC which is a subsidiary of Jollibee Worldwide Pte. Ltd. (JWPL) from Titan Dining LP (Titan Fund), a fast-food operator in a statement released to the trade on Tuesday.
“This will be done through the transfer of 100% ownership of Tim Ho Wan Holdings Pte. Ltd. (TPL), the company that manages Tim Ho Wan’s business, from a subsidiary of Titan Fund to JWPL,” JFC said.
“JWPL has held a 92% interest in participation in Titan Fund from January 2024. Accordingly, its cash payment will amount to only SGD 20.2 million, which corresponds to the 8% interest held by other investors in Titan Fund,” it added.
Tim Ho Wan, which has about 80 stores in 11 countries, will be the brand of the Jollibee group in the Chinese food category, JFC said.
Purchases are subject to closing conditions.
Once completed, the TPL will be integrated into JFC’s portfolio and financial reports.
Managing Director of Chinabank Capital Corp. Juan Paolo E. Colet said the transaction supports JFC’s global expansion plans.
“The agreement does not surprise us. We all know that JFC is committed to competing globally, and this transaction fits that strategic direction. By taking full control and ownership of Tim Ho Wan, JFC can better utilize the brand to grow and improve operational efficiency,” he said in a Viber message.
Research Analyst for AP Securities, Inc. Jose Antonio B. Cipres said the agreement is part of JFC’s plan to improve costs.
“For JFC, this will be a further development in terms of costs as the result will be the consolidation of Tim Ho Wan’s funds into JFC. Note that JFC will only be buying 8%, which translates to P900 million, since they already accounted for the remaining 92%,” he said in a Viber message.
“We also see it as something that can enhance JFC’s commitment to global expansion,” he added.
In January, JFC increased its maximum commitment to Titan Fund to SGD 414 million to finance the expansion of Tim Ho Wan.
Established in 2009, Tim Ho Wan is known for dishes such as pork barbecue, pork rice roll, fried turnip cake, and hot egg cake.
JFC shares advanced 4.09% or P10.8 to P275 each on Tuesday. – Revin Mikhael D. Ochave
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